Texon Boosts Production at Eagle Ford Well

Texon advised that its first Eagle Ford well, Tyler Ranch EFS #1H, has flowed 1,267 boepd representing 1,202 bpd of light sweet crude oil and 782 mcfpd of gas with a flowing tubing pressure of 2610 psi through a 16/64" choke. Some of the frac fluid is also still being recovered.
The gas has a high heating value of approximately 1,250 mmbtu per thousand cubic feet so at a Henry Hub gas price of US $4.00/mmbtu, the Company would receive US $6.40/mcf.

Texon's working interest in the well is 82%. Texon's beneficial interest (NRI) in the production is 61.6% or some 780 boepd of the above production.

The Company's share of oil and gas being produced from the well is now part of Texon's revenue stream.

Texon has a 92% working interest in approximately 5,000 gross acres in the Leighton, Mosman, Rockingham and Sutton leases (LMRS) which surround or are nearby to Texon's first Eagle Ford well. The Eagle Ford reservoir is expected to be present throughout these leases.

Texon's nett Eagle Ford acreage holding is 4,550 acres which could represent a resource potential of some 30-34 mmboe as to the Company's working interest or 23–26 mmboe as to Texon's net revenue interest in these leases.

Texon already has 8 producing Olmos wells on its LMRS leases as well as existing oil and gas production facilities. The facilities include oil and gas separation equipment, oil tanks, measurement systems and connections to gas pipelines.

These facilities have enabled the immediate tie-in to sales of the oil and gas being produced from the first Eagle Ford well.

David Mason said, "this is a very good outcome for the Company and the result significantly enhances the value of Texon's overall Eagle Ford, Olmos and facilities holdings in its 5,000 acres of Leighton, Mosman, Rockingham and Sutton leases."